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ruka2015
New Member

Is a Pell grant considered taxable income? I am confused as to why it is added to my total income. how should it be filed?

 
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CathiM
New Member

Is a Pell grant considered taxable income? I am confused as to why it is added to my total income. how should it be filed?

Your Pell grant (considered the same as a scholarship by the IRS) may be taxable if the amount of the grant exceeded your "qualified education expenses" or you did not enroll in a program as a degree candidate.  Check your tax return to make sure you have entered these things correctly. Qualified education expenses include tuition and fee payments, and the books, supplies, and equipment required for your courses. Here is a link where you can read more: Do You Have to Claim Pell Grant Money on Your Taxes?

According to the IRS: a Pell grant does not need to be reported on your tax return, if you satisfy two IRS requirements that apply to all scholarships and grants:

  1. You must be enrolled in a program as a degree candidate, or you must be pursuing a training program that prepares you for specific types of employment upon completion.
  2. You must use the Pell grant only to pay for “qualified education expenses.”
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